Post on 29-Dec-2015
Pozavarovalnica Sava, d. d.
Analyst MeetingPresentation of Business Results
Sava Reinsurance CompanyJanuary–September 2011
November 2011
Major eventsSIGNIFICANT EVENTS DURING THE REPORTING PERIOD
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Sava Reinsurance Company and AtaHolding OJSC of Azerbaijan signed a memorandum of co-operation regarding the establishment of a life insurance company in Azerbaijan.
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In October 2011, Standard & Poor's reaffirmed their »A–« Rating for Sava Reinsurance Company.
In July the controlling company recapitalised its subsidiary Sava osiguruvanje, Macedonia, with EUR 2,5m. The resolution was entered in the court register in September 2011.
In August, the controlling company recapitalised its subsidiary Sava životno osiguranje with EUR 0,4m. The resolution was entered in the court register in September 2011.
1–9/2001 results versus plan
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Sava Reinsurance Company 1-9 2010 1-9 2011 Plan 2011Index
2011/2010Realised as % of plan
Gross premiums written (EUR) 113.390.047 110.933.925 138.093.827 97,8 80,3%
Net profit/loss for the period (EUR)
1.594.678 7.092.030 4.731.783 444,7 149,9%
Net combined ratio 101,3% 93,3% 99,1% 92,0 94,1%
31.12.2010 30.9.2011 31.12.2011
Shareholders' equity (EUR) 156.138.327 160.552.919 156.015.965 102,8 102,9%
Benign claims
environment
Planned drop in premium volume;
reducing exposure to the Slovenian insurance
market
Dividends of
Zavarovalnica Maribor
and Zavarovalni
ca Tilia
1.6
4.7
7.1
1.7
4.4
1.1%
3.1%
4.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
3Q 2010 Plan 2011 3Q 2011
mill
ion
EUR
Net profit Comprehensive income ROE
Major items of the income statement
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(EUR)Three quarters
2010Three quarters
2011Index 11/10
Net earned premiums 92.527.581 92.265.324 99,7
Net claims incurred 65.084.043 57.893.474 89,0
Operating expenses 28.691.252 28.180.704 98,2
Other technical income 2.286.362 1.181.013 51,7
Other technical expenses 1.894.594 1.334.627 70,4
Technical result -854.947 6.037.532 906,2
Income from investments in affiliates 345.038 4.540.448 1.315,9
Investment income 7.253.756 6.186.996 85,3
Expenses for investments in affiliates 0 2.549.076
Expenses for financial assets and liabilities 4.684.447 4.993.462 106,6
Net investment income 2.914.347 3.184.906 109,3
Other income 21.256 1.779 8,4
Other expenses 158 62 39,2
Result of other items (12 + 13 + 14) 21.098 1.717 8,1
Profit/loss before tax 2.080.498 9.224.155 443,4
Tax on profit 485.817 2.132.125 438,9
Net profit for the period 1.594.680 7.092.030 444,7 Note: Investment income includes deposits with cedants.
Benign claims environment
Lower commission rates
Dividends of ZM and Zavarovalnica Tilia of EUR 4,5m
Result of exchange rate movements
Impairment losses of EUR 5,4m
Impairment of Sava Tabak of EUR 2,5m
1–9/2011 results: premiums, claims, combined ratio
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0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Slovenia International
58.854.655.4 55.6
65.872.3
mill
ion
EUR
Gross premiums written
1-9 2010
1-9 2011
Plan 2011
-5,8%
84,2% of plan realised
1,8%
76,8% of plan realised
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Slovenia International
34.8
22.2
27.423.6
46.1
39.5
mill
ion
EUR
Gross claims paid
1-9 2010
1-9 2011
Plan 2011
-21,1% 6,2%
59,5% of plan realised
59,6% of plan realised
54.3 57.462.8
64.465.7
54.143.4 41.6
97.4%108.7%
96.6%103.3%
87.7%99.8%
83.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2005 2006 2007 2008 2009 2010 3Qs 2010 3Qs 2011
mill
ion
EU
R
Domestic portfolio
Net premiums written Net combined ratio
20.528.7
34.4
49.556.0
67.1
52.0 52.6
83.5%
64.7%
103.8%96.5% 94.2%
93.3% 91.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
2005 2006 2007 2008 2009 2010 3Qs 2010 3Qs 2011
mill
ion
EU
RInternational portfolio
Net premiums written Net combined ratio
1–9/2011 results: operating expenses
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(EUR) 1-9 2010 1-9 2011Index
2011/2010
NET OPERATING EXPENSES 28.691.251 28.180.704 98,2
Acquisition costs including change in deferred acquisition costs
25.551.845 25.069.069 98,1
Acquisition costs 25.125.441 24.980.097 99,4
Change in deferred acquisition costs
426.404 88.973 20,9
Other operating expenses 4.530.585 4.578.978 101,1
Income from reinsurance commission and reinsurance contract profit participation
-1.391.179 -1.467.344 105,5
Gross expense ratio 26,2% 26,6% 101,9
Net expense ratio 31,0% 30,5% 98,5
1–9/2011 results: investment structure
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(EUR) 31.12.2010 30.9.2011
Deposits and CDs 73.003.230 54.980.459
Bonds 108.879.179 121.253.305
Shares 9.350.409 9.044.993
Mutual funds 16.172.633 7.999.139
Strategic shares 106.236.355 117.030.606
Other 6.863.251 9.471.001
Total* 320.505.056 319.779.503
*The investment structure does not include deposits with cedants of EUR 7.6m.
Recapitalisation of Zavarovalnica Maribor of EUR 5.9m; other recapitalisations of EUR 5.2m and impairments of Sava
osiguruvanje, Macedonia, of EUR 2.5m
Change in the STRUCTURE of the investment portfolio
Reducing volatility of return and derisking the investment portfolio
17.2%
37.9%
2.8%2.5%
3.0%
36.6%
Structure at 30.9.2011Deposits and money market instruments
Bonds
Shares
Mutual funds
Other
Strategic shares
22.8%
34.0%
2.9%5.0%
2.1%
33.1%
Structure at 31.12.2010
1–9/2011 results: investment return & income9
(EUR) 1-9 2010 1-9 2011 Index 2011/2010
Investment income 9.710.720 10.637.536 109,5
Investment expenses 7.282.878 7.542.538 103,6
Net investment income* 2.427.842 3.094.999 127,5
*The net investment income does not include interest income from deposits with cedants of EUR 120.000 for 3Q 2010 and EUR 90,000 for 3Q 2011.
Impacts on INVESTED ASSETS and the INVESTMENT RETURN:
- Settlement of consideration for Zavarovalnica Illyria of EUR 8.5m - Net cash flows from reinsurance operations of EUR 10.7m
- Impairment of goodwill of Sava osiguruvanje, Macedonia of EUR 2.5m
- Impairment of other investments of EUR 5.4m
- Dividend income of EUR 4.7m
300.9
311.1
316.6
320.5
314.1
309.8
319.81.4%
0.7%
1.2%
0.8%
0.5%
-0.02%
1.3%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
290.0
295.0
300.0
305.0
310.0
315.0
320.0
325.0
31.3.2010 30.6.2010 30.9.2010 31.12.2010 31.3.2011 30.6.2011 30.9.2011
Invested assets (million EUR) Investment return
1–9/2011 results: statement of fin. position
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EQUITY AND LIABILITIES (30 .9.2011) = EUR 422.9m
Structure 31.12.2010
Structure 31.12.2011
Equity 37,3% 38,0%
Technical provisions 41,6% 44,6%
Liabilities from operating activities
7,6% 6,0%
Financial liabilities 8,1% 8,1%
Other liabilities from operating activities
5,3% 3,4% EQUITY (30.9.2011) = EUR 160,6m
31.12.2010 30.9.2011 Index
Share capital 39.069.099 39.069.099 100,0Share premium 33.003.752 33.003.752 100,0Profit reserves 83.238.204 82.994.634 99,7Fair value reserve -2.767.816 -5.445.255 196,7Net profit for the period 3.596.862 7.335.600 203,9
TP = EUR 188,6m 31.12.2010 30.9.2011 Index
Unearned premiums 41.861.443 45.776.823 109,4
Provision for outstanding claims
131.492.898 142.256.220 108,2
Other TP 587.633 598.780 101,9
(EUR) 1-9 2010 1-9 2011
Available capital 42.276.241 33.834.199
Required kapital 20.300.831 21.140.440
Excess of available over required capital*
21.975.410 12.702.759
208,2% 160,1%*estimate until end of 2011: EUR 19.503.024 (193%)
Thank you for your attention.
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